In a report released today, Sam Poser from Williams Trading maintained a Hold rating on Foot Locker (FL – Research Report), with a price target of $19.00.
Sam Poser has given his Hold rating due to a combination of factors impacting Foot Locker’s performance. Primarily, the company’s market share is being eroded by competitors like JD Sports, which outperforms Foot Locker both in-store and online. This competitive disadvantage is expected to continue as JD Sports receives better product allocations from key brands such as Nike.
Additionally, Foot Locker’s lack of focus on its core customer base and the diverse consumer focus across its various banners complicate management efforts. The company’s primary customers are young fashion sneaker enthusiasts, but its other banners target different demographics, making cohesive management challenging. Furthermore, potential negative impacts from new federal immigration policies could adversely affect the WSS business, contributing to the cautious outlook. As a result, revenue and earnings per share for the upcoming quarter are expected to be at the lower end of guidance, justifying the Hold rating.
According to TipRanks, Poser is a 5-star analyst with an average return of 15.6% and a 51.52% success rate. Poser covers the Consumer Cyclical sector, focusing on stocks such as Nike, Skechers USA, and Birkenstock Holding plc.
In another report released today, Citi also maintained a Hold rating on the stock with a $20.00 price target.